Brexit decision caused shock on the market. However, demand appeared yesterday (it was caused by Thursday’s BoE meeting). Due to this, last week’s low created new support at 1.2870. On Thursday the Bank of England will announce decision about the interest rates. The forecast is to cut rates below 0.5 per cent soon to counter the Brexit vote. If rates will be cut further downward movement should occurred. Alternatively if the BoE keeps rates unchanged, it will cause upward movement of GBPUSD.

You have to keep an eye on nearest resistances. Nearest resistance is located at 1.3430 (it is visible at daily time-frame). Stronger resistance is located at 1.3670 (weekly TF). Currently there is no confirmation that upward movement is the new uptrend. Due to this we must look at this movement as a correction in downtrend.

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GBPUSD_D1

GBPUSD_W1

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Author of worldtrader.pl blog and big supporter of technical analysis. Active medium-term trader. In his analysis uses classical charts, price action as well as harmonic patterns and Elliott Waves. In trading he always tries to take into account two points of market's view, in accordance with the principle that each transaction may be attractive both for the demand and supply traders.